Economics Homework 1 Recap

If people demand fewer Netflix subscriptions when the price of Hulu subscriptions fails, then Netflix and Hulu are ?

• not related

• substitutions

• complements

• inferior goods

Consider the supply for wool sweaters. An increase in the price of wool will?

• increase the supply of wool sweaters

• decrease the supply of wool sweaters

• increase the quantity supplied of wool sweaters

• decrease the demand for wool sweaters

(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose there is a freak snowstorm in Florida that destroys one-quarter of the orange crop. Which panel BEST illustrates how this event will affect the market for vitamin C tablets, which are a substitute in consumption for oranges?

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If tortilla chips chips are a inferior good, when income rises, the equilibrium price will _____, and the equilibrium quantity will _____?

• decrease; increase

• decrease; decrease

• increase; increase

• increase; decrease

if the economy blooms and people income rises, then the demand curve for normal good like a new automobile will____, and the equilibrium quantity of new automobiles produced will ____?

• Shift to the right, increase

• Not shift; not change

• Not shift, increase

• Shift to the left, decrease

The Keto diet is sweeping the United States. The key to the diet is to eat large amounts of red meat (beef) but no carbohydrate-rich foods or poultry. As Americans switch to the new diet, we can expect a(n) _____ in the _____ poultry, leading to a shift to the _____ of the _____ curve for poultry and _____ poultry prices.

• decrease; supply of ; left; supply; higher

• increase; supply of ; right; supply; higher

• decrease; demand for; right ; demand; lower

• decrease; demand for; left; demand; lower

The market for smoothies is in equilibrium, and the price of yogurt (an ingredient in smoothies) rises. In the smoothies markets, ____ will _____, _____ the price and ____ the quantity?

• demand; decrease; decreasing; decreasing

• demand; decrease; increasing; decreasing

• supply; increase; decreasing; increasing

• supply; decrease; increasing; decreasing

• Tuna only

• Both computers and tuna

• Neither computers nor tuna

Dr. Aquafresh is a dentist who employs an assistant, Mr. Close up. If Dr. Aquafresh worked all day at the front desk, he could answer 40 emails. If he worked all day with patients, he could clean the teeth of 40 patients. If Mr. Close-up worked all day at the front desk, he could answer 60 emails. If he worked all day with patients, he could clean the teeth of 20 patients. _____ has a(n) _____ advantage in _____.

• Dr. Aquafresh; absolute; answering emails

• Mr. Close up; comparative; answering emails

• Mr. Close up; absolute; cleaning patient teeth

• Dr. Aquafresh; comparative; answering emails

Which statement is positive?

• The low income cutoff for a family of four is 36,000

• A low unemployment rate is important economic goal for the country

• Everyone in the country should have a job if they want to

• Professional athletes should not be paid more than the president